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COMPARED with most other industries, the market for equity research is an unusual one.
Others are not so sure that the LSE's only goal is to capture the off-exchange market for equity derivatives in London.
Market analyst Mintel said that, after increasing for eleven consecutive years, the market for equity release schemes was now worth £1.2bn.
Anthem is the latest big mutual insurance company to go to the stock market for equity capital, after the conversions of MetLife, John Hancock Financial Services and the Principal Financial Group.
It is a new service to a large and untapped market, says the LSE. Britain's over-the-counter market for equity derivatives is equivalent to perhaps twice the volume traded on Euronext.liffe, easily London's biggest derivatives market.Ever since the LSE's failure to acquire Liffe, Ms Furse has been looking for a partner in derivatives.
Another graceless acronym joins the financial world: EDX London.In the hope of capturing the off-exchange market for equity derivatives in London, the LSE is paying a fullish price, £18.2m ($28.6m), for a 76% stake in OM London Exchange, OM's derivatives arm in Britain.
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The commodity boom of 1968-80 coincided with a bear market for equities.
Under Mr Thain's predecessor, Richard Grasso, the NYSE became too comfortable in its role as the dominant market for equities.
Pay took off at a time when executives were under more scrutiny than in the 1950s and 1960s, a period of restraint in spite of a bull market for equities.
Our main findings are that the price-setting formula is (i) designed to strongly favor the issuer and (ii) is consistent with the main outcome of the 'life cycle hypothesis' for structured financial products [Stoimenov, P.A., Wilkens, S., 2005. Are structured products 'fairly' priced? An analysis of the German market for equity-linked instruments. Journal of Banking and Finance 29, 2971 2993].
But a raft of new government bonds are set to flood the market in January and February, and if the bear market for equities starts to pick up, bond prices will fall and their yields will rise, making it more expensive for governments to issue their debt.
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